VIX Options, Explained

The VIX (CBOE Volatility Index) is a measure of the implied volatility in SP 500 options contracts, and investors are now able to trade this index by buying options on this index. One can only buy options on this index because there is no underlying security to purchase, as the VIX is just an index based on calculations. Keep in mind that these options are cash settled, and are European style in that you are not able to exercise them until the day of expiry. To read the full article please go to Seeking Alpha